Platinum Realty pays $12.5M to Harbor Group for Flatbush retail, was $22M in 2015

The Koptiev family’s Platinum Realty Associates through the entity 833 Flat LLC paid $12.5 million to Harbor Group International through the entity 22-26 Flatbush, LLC for the mixed-use building (K2) at 833 Flatbush Avenue and the adjacent retail building (K1) at 847 Flatbush Avenue in Flatbush, Brooklyn. Harbor Group International bought the two buildings in 2015 for $22 million.
The deal closed on September 6, 2024 and was recorded on September 20, 2024. The two properties have 31,710 square feet of built space and 38,450 square feet of additional air rights for a total buildable of 70,132 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $393 and the price per buildable square foot is $177 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Platinum Realty Associates was David Koptiev. The signatory for Harbor Group was company CFO Carla R. Stoner.
Ethan Stanton of JLL brokered the deal.

The PincusCo database currently indicates that Platinum Realty Associates owned at least 84 commercial properties with 485,650 square feet, 52 residential units and a city-determined market value of $106.3 million. (Market value is typically about 50% of actual value.) The portfolio has $37.8 million in debt, borrowed from Signature Bank and First National Bank of Long Island. Within the portfolio, the bulk, or 73 percent of the 485,650 square feet of built space are retail properties, with mixed-use properties next occupying 19 percent of the space. The bulk, or 63 percent of the built space, is in Queens, with Brooklyn next at 32 percent of the space.

The PincusCo database currently indicates that Harbor Group International owned at least seven commercial properties with 1,312,913 square feet, 194 residential units and a city-determined market value of $479.2 million. (Market value is typically about 50% of actual value.) The portfolio has $726.6 million in debt, with top three lenders as Goldman Sachs, AIG, and New York Community Bank respectively. Within the portfolio, the bulk, or 86 percent of the 1,312,913 square feet of built space are office properties, with elevator properties next occupying 10 percent of the space. The bulk, or 86 percent of the built space, is in Manhattan, with Brooklyn next at 13 percent of the space.

Prior sales and revenue

The two properties with a total of 31,710 square feet of built space generated revenue of $1.2 million per year or $37 per square foot. The sale price per square foot was $393.

The property

The first parcel has frontage of 92 feet and is 105 feet deep with a total lot size of 14,893 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.1 million. The most recent loan totaled $11 million and was provided by Signature Bank on May 10, 2020.
The first parcel has frontage of 18 feet and is 116 feet deep with a total lot size of 2,640 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $484,000. The most recent loan totaled $11 million and was provided by Signature Bank on May 10, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Flatbush, The majority, or 54 percent of the 37.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 22 percent of the space. In sales, Flatbush has 2.2 times the average sales volume among other neighborhoods with $571.2 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Flatbush has 1.4 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Brooklyn. It had 1.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On the tax block of 833 Flatbush Avenue, PincusCo has identified the owners of 12 of the 17 commercial properties representing 319,843 square feet of the 337,499 square feet. The largest owner is Harbor Group International, followed by David Adelsberg and then Workforce Housing Group.
On the tax block, there were three new building construction projects totaling 18,513 square feet. The largest is a 14-unit, 9,239 square-foot residential (R-2) building submitted by Joel Waldman with plans filed July 29, 2020 and it has not been permitted yet. The second largest is a seven-unit, 4,931 square-foot residential (R-2) building submitted by Joel Waldman with plans filed October 22, 2021 and permitted June 1, 2022.

The majority, or 50 percent of the 337,499 square feet of built space are elevator buildings, with walkup buildings next occupying 35 percent of the space.

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